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A toy manufacturing company currently maintains plants in Atlanta and Tulsa that supply to retail centers in Los Angeles and New York. Because of expanding demand, the company has decided to build a third plant and has narrowed the choice to one of two cities, Seattle or Baltimore. The distribution costs, as well as plant capacity and retailer demand, are shown in the table:
Retail Stores |
Manufacturing Plant |
Demand |
|||
Atlanta |
Tulsa |
Seattle |
Baltimore |
||
Los Angeles |
$ 8.00 |
$ 4.00 |
$ 5.00 |
$ 4.00 |
800 |
New York |
$ 5.00 |
$ 7.00 |
$ 6.00 |
$ 6.00 |
1200 |
Capacity |
600 |
900 |
500 |
500 |
Solve the given problem scenario for the toy manufacturer by recommending the most suited new location to establish the plant.
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